• DROP: Mexican worldwide car exports shrank last year for the first time since the Great Recession due to a slow down in production, according to new data released by Mexico’s statistics agency (INEGI). Industry officials predict a further cut in 2020 due to weak global demand.
• DATA: According to the new dat, Mexican worldwide car exports in 2019 fell by 3.35% to 3.33 million units. While exports to US are still in positive territory, Mexican car exports to Canada and Germany fell down by 12% and 8.5% respectively. The US is Mexico’s main car market by far.
• DEMAND: “This is not a matter of plant capacity, it is a matter of how much production the market is absorbing. Worldwide we are seeing very important falls”, said Eduardo Solis, the longtime head Mexico’s auto industry association, who is leaving the post after a 12 year stint.
• CAPACITY: Overall, Mexican car production fell for a second year in a row from 3.91 million units in 2018 to 3.75 million units in 2019. According to Solis, the Mexican auto sector has enough installed capacity to produce at least 4.5 million units a year.
